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Cisco Systems, Inc. (CSCO)

  • Tue, Jun. 2, 6:41 PM
    • Meg Whitman states at HP's (NYSE:HPQ) annual Discover conference the company's PC/printing spinoff will go into effect on Nov. 1, the start of HP's FY16.
    • HP has also used the event to announce a partnership with fast-growing data center switch vendor Arista (NYSE:ANET) to provide a joint reference architecture for deployments combining Arista's switches, HP's servers and storage, and HP's OneView data center management software. The solution is partly aimed at common rival Cisco (NASDAQ:CSCO), which offers solutions pairing its UCS servers and Nexus data center switches.
    • Other HP announcements: 1) A new hardware line for its 3PAR StoreServe array family (the StoreServe 20000) declared to provide flash capacity for 25% less than older offerings, as well as much-improved storage densities. 2) Helion CloudSystem 9.0, a new version of HP's cloud management software that supports Amazon Web Service, Microsoft's Azure, and OpenStack, among other cloud environments.
    • Arista rose 2.7% in regular trading. After the close, Nomura launched coverage with a Buy rating and $79 target.
  • Mon, Jun. 1, 2:54 PM
    • Cisco (CSCO +0.1%) CTO and chief strategy officer (CSO) Padmasree Warrior will be joining presidents Rob Lloyd and Gary Moore out the door before Chuck Robbins takes office as CEO, Re/code reports. Warrior has been Cisco's CTO since 2008, and its CSO since 2012.
    • Meanwhile, Robbins has written a blog post noting Lloyd and Moore's pending departures, and his planned reorg. "Going forward, we will move to a flatter leadership team designed for the speed, innovation and execution that is required of us over the next decade ... I will announce my next generation organizational structure and my leadership team within two weeks."
    • Earlier: Cisco presidents Lloyd, Moore leaving as Robbins takes over
  • Mon, Jun. 1, 9:36 AM
    • COO Gary B. Moore and Development and Sales chief Rob Lloyd plan to leave Cisco (CSCO +0.5%) on July 25, the day before field operations SVP Chuck Robbins takes over as CEO. In addition, Robbins plans to unveil a "flatter" leadership structure on June 11.
    • Moore and Lloyd were both named company presidents in 2012, fueling speculation they were the front-runners to replace John Chambers. Lloyd, in particular, became seen as Chambers' most likely successor.
    • The announcement comes ahead of Cisco's June 8/9 investor meetings, which will be help amid the June 7-11 Cisco Live! conference.
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  • Thu, May 28, 4:36 PM
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  • Thu, May 21, 9:30 AM
    • Alongside Goldman's list of 50 stocks appearing most as top holdings at hedge funds is its list of the 50 top shorts.
    • New additions this quarter: Baxter Intl (NYSE:BAX), UPS, Marriott (NASDAQ:MAR), NextEra (NYSE:NEE), Ford (NYSE:F), National Oilwell Varco (NYSE:NOV), McDonald's (NYSE:MCD), M&T Bank (NYSE:MTB), CenturyLink (NYSE:CTL), Amgen (NASDAQ:AMGN), Pioneer Natural (NYSE:PXD), Duke Energy (NYSE:DUK), Seagate (NASDAQ:STX), AbbVie (NYSE:ABBV), Cisco (NASDAQ:CSCO).
    • The full list (in order of $ value of short interest): AT&T (NYSE:T), Disney (NYSE:DIS), IBM, Verizon (NYSE:VZ), Intel (NASDAQ:INTC), Kinder Morgan (NYSE:KMI), Exxon (NYSE:XOM), Pfizer (NYSE:PFE), J&J (NYSE:JNJ), Deere (NYSE:DE), Caterpillar (NYSE:CAT), Exelon (NYSE:EXC), GE, Boeing (NYSE:BA), Halliburton (NYSE:HAL), Fox (NASDAQ:FOXA), Comcast (NASDAQ:CMCSA), UTX, Regeneron (NASDAQ:REGN), Merck (NYSE:MRK), (NYSE:CRM), AbbVie (ABBV), Conoco (NYSE:COP), Wal-Mart (NYSE:WMT), Eli Lilly (NYSE:LLY), Celgene (NASDAQ:CELG), Schlumberger (NYSE:SLB), AutoZone (NYSE:AZO), Wells Fargo (NYSE:WFC), Emerson (NYSE:EMR), McDonald's (MCD), Reynolds (NYSE:RAI), Target (NYSE:TGT), Accenture (NYSE:ACN), Coca-Cola (NYSE:KO).
  • Wed, May 13, 5:33 PM
    • During Cisco's (NASDAQ:CSCO) FQ3 earnings call, John Chambers said he "would not bet" on a security M&A rumor heard today.
    • That was an apparent reference to FireEye (NASDAQ:FEYE), whose shares jumped on unconfirmed rumors that Cisco had made a bid.
    • FireEye has fallen to $41.71 in AH trading following Chambers' remarks. Shares are still up $0.41 from Monday's close.
  • Wed, May 13, 5:00 PM
    • Cisco (NASDAQ:CSCO) guides on its FQ3 CC (webcast) for 1%-3% Y/Y FQ4 revenue growth and EPS of $0.55-$0.57, in-line with a consensus for 1.9% growth and EPS of $0.56.
    • Product orders rose only 2% Y/Y in FQ3, a slowdown from FQ2's 5%. Service provider orders (-7%, with U.S. down 17%) remain a weak spot, as do emerging markets (flat, with BRIC markets declining). Enterprise and public sector orders (up 7% apiece, with U.S. orders respectively rising 21% and 24%) were healthier, as were SMB orders (+6%). Americas and EMEA orders were both up 2%, and Asia-Pac 1% (8% exc. China).
    • Product line performance: Switching revenue +6% Y/Y in FQ3 to $3.56B. Routing +4% to $2B. Collaboration +7% to $973M. Service provider video -5% to $914M. Data center (UCS servers) +21% to $801M. Wireless +9% to $611M. Security +14% to $412M.
    • Some strong points: 1) Meraki Wi-Fi hardware/software sales rose 92% Y/Y. 2) Orders for Cisco's APIC SDN controllers rose 27% Q/Q, and APIC customer count to 580 from 300+. 3) Security order growth (benefiting from broader cybersecurity demand) topped revenue growth. 4) In spite of soft carrier capex, high-end routing rose 5%, driven by CRS-X and NCS core router demand.
    • CSCO now -1% AH to $29.06.
    • FQ3 results, details
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  • Wed, May 13, 4:26 PM
    • Cisco's (NASDAQ:CSCO) product sales continued rebounding in FQ3 following a late-2013/early-2014 slump: They rose 6% Y/Y to $9.33B. Services revenue (relatively stable) rose 3% to $2.81B.
    • Financials: Gross margin came in at 62.5%, topping guidance of 61%-62% and boosting EPS. GM was up 80 bps Q/Q and down 20 bps Y/Y. Thanks in part to job cuts, GAAP operating expenses rose a modest 3% Y/Y to $4.6B - $2.4B was spent on sales/marketing, $1.5B on R&D, and $510M on G&A. The deferred revenue balance rose 8% Y/Y to $14.2B.
    • $1B was spent on buybacks, down slightly from FQ2's $1.2B. $5.3B is currently left on Cisco's buyback authorization. Cisco ended FQ3 with $54.4B in cash (much of it offshore), and $21B in debt.
    • CSCO -0.2% AH - many expected solid numbers. CC at 4:30PM ET (webcast), guidance will be provided.
    • FQ3 results, PR
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  • Wed, May 13, 4:06 PM
    • Cisco (NASDAQ:CSCO): FQ3 EPS of $0.54 beats by $0.01.
    • Revenue of $12.1B (+4.9% Y/Y) beats by $30M.
    • Shares -0.14%.
    • Press Release
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  • Wed, May 13, 9:26 AM
    • EZchip (NASDAQ:EZCH) uses its Q1 report to state its largest customer (i.e. Cisco) doesn't currently plan to use EZchip's NPS-400 network processor (NPU) in its next-gen edge router line cards.
    • The company adds Cisco (NASDAQ:CSCO) recently began using EZchip's NP-5 NPU (entered production in late 2014), that it doesn't think "a next generation successor for the NP-5 is likely to ship for approximately three years," and that the NP-5 is expected to "continue generating revenues at this customer for several more years beyond this three year period."
    • Concerns that Cisco could drop EZchip in favor of an in-house NPU have been around since the networking giant unveiled its nPower X1 NPU in Sep. 2013. At the time, EZchip said it believes Cisco hasn't made a decision on which processor will succeed the NP-5.
    • Today,  EZchip says it believes Cisco's next-gen edge router line cards will require more throughput than is provided by the NPS-400 (480 Gbps), and that Cisco is "currently developing such a solution in-house." EZchip, for its part, is working on an NPS-400 successor (the 1Tbps NPS-1000) that it hopes to sell Cisco on. The NPS-400 begins sampling in 2H15, and is being considered for other platforms at Cisco (as well as other clients).
    • EZchip has tumbled to $14.28 in premarket trading.
    • Q1 results, PR
  • Tue, May 12, 5:35 PM
  • Mon, May 11, 10:19 AM
    • Pac Crest's Brent Bracelin has upgraded Cisco (CSCO +1.5%) to Outperform ahead of Wednesday's FQ3 report, and set a $36 target.
    • Bracelin: "[T]he April quarter should mark the beginning of a multiquarter recovery for Cisco driven by several company-specific product cycle tailwinds across switching, routing, servers and wireless ... Possibility of a strong 2H rebound in service provider spending also gives us an upward bias entering F2016," Goldman argued in April 802.11ac Wave 2 Wi-Fi deployments will lift both Wi-Fi access point and campus Ethernet switch demand.
    • Bracelin also consider SDN an opportunity for Cisco rather than a threat (others disagree), believes Cisco's InterCloud platform is growing rapidly (via service provider partners), and notes shares still only trade at 13x forward EPS (below the S&P 500's 17.6x).
    • Oppenheimer reported positive Cisco checks last week. Bracelin's upgrade comes a week after Cisco named sales/partner chief Chuck Robbins its next CEO, surprising many who thought president Rob Lloyd would get the job.
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  • Tue, May 5, 3:33 AM
    • Cisco Systems (NASDAQ:CSCO) is set to launch a converged cable access platform, enabling cable operators to offer download speeds of one gigabit a second or more.
    • The new cBR-8 system, to be unveiled on Tuesday, will "enable cable operators to achieve savings that could exceed 40% of capital and operating expenses over five years," the networking-equipment maker said in a statement.
    • Yesterday, Cisco named company veteran Chuck Robbins as its new CEO. Robbins will replace John Chambers on July 26.
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  • Mon, May 4, 8:45 AM
    • Cisco Systems (NASDAQ:CSCO) has named Chuck Robbins its CEO.
    • The move is effective July 26, at which time current CEO John Chambers takes on the role of executive chairman. Robbins was also elected to the board on May 1.
    • Robbins joined Cisco in 1997. Chambers joined the company in 1991 and has been its CEO since 1995.
  • Fri, Apr. 24, 10:15 AM
    • "We expect the stock to outperform on both upside to estimates and multiple expansion," writes Goldman's Simona Jankowski, putting Cisco (CSCO +0.4%) back on her firm's Conviction Buy list 17 months after pulling it. Her target remains at $34.
    • Jankowski, who has long kept a Buy rating on Cisco, sees the adoption of Wave 2 802.11ac Wi-Fi systems not only boosting Wi-Fi hardware demand, but also (given Wave 2's bandwidth needs) driving sales of Cisco's 2.5G/5G campus Ethernet switches, and that the upgrades will amount to "a once-in-a-decade refresh").
    • She also notes shares trade at a 30% discount to the S&P 500, and thinks that gap could narrow as more attention is given to Cisco's InterCloud platform (aims to provide a global network of public cloud infrastructures using Cisco products, via service provider partners) and IoT efforts.
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  • Tue, Apr. 7, 2:41 PM
    • Hoping to counter next-gen firewall leader Palo Alto Networks (PANW +2.7%), threat-prevention hardware/software leader FireEye (FEYE +4.5%), other smaller/share-gaining enterprise security firms, Cisco (CSCO +1.2%) has refreshed its ASA firewall line and rolled out new malware-protection and incident-response services.
    • New ASA next-gen firewalls (feature technology obtained through the SourceFire acquisition) are declared to provide mid-sized firms and branch offices "with the same advanced malware protection and threat detection capabilities" enjoyed by enterprises. They combine standard firewall support with app visibility/control, malware protection, and intrusion prevention features; managed security services are provided for extra.
    • AMP Threat Grid, a malware-protection solution made possible by the ThreatGRID acquisition, combines malware analysis with threat intelligence (based on behavioral indicators and a knowledge base); it's available either as a cloud service or through an on-premise appliance based on Cisco's UCS servers. Meanwhile, new incident-response services help companies probe and respond to cyberattacks. Cisco has already been rapidly adding to its security service portfolio.
    • Cisco's security product revenue rose 6% Y/Y in the January quarter to $416M; Palo Alto and FireEye respectively saw 54% and 150% sales growth in their most recent quarters (the latter was boosted by M&A). Palo Alto recently launched a threat intelligence service (AutoFocus) to complement its popular WildFire threat-detection service. FireEye offers a slew of threat-prevention/intelligence services, and has been hired to probe several high-profile cyberattacks.
    • Shares of all three companies are higher on an up day for equities.
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Company Description
Cisco Systems Inc is engaged in designing, manufacturing and selling of Internet Protocol (IP) based networking products and services related to the communications and information technology (IT) industry.